Financial planners say PMVVY offers more avenues to senior citizens to earn a steady regular income at a time when FD rates are not that attractive.

PMVVY: It gives an assured pension based on a guaranteed rate of return of 8 per cent.

The Union Cabinet, in a meeting chaired by Prime Minister Narendra Modi, on Wednesday approved the doubling of investment limit in Pradhan Mantri Vaya Vandan Yojana (PMVVY) to Rs 15 lakh, from the current level of Rs 7.5 lakh. This will help senior citizens earn a pension of up to Rs 10,000 per month. The Cabinet also approved the time period for subscription of this scheme to March 31, 2020, from May 4, 2018. In Budget 2018, Finance Minister Arun Jatiley had proposed to increase the investment limit in PMVVY or Pradhan Mantri Vaya Vandana Yojana to Rs. 15 lakh. Financial planners say PMVVY offers more avenues to senior citizens to earn a steady regular income at times when fixed deposit interest rates are not that attractive.

1) The PMVVY scheme has been implemented through Life Insurance Corporation of India (LIC) to provide social security during old age and protect elderly persons aged 60 years and above against a future fall in their interest income due to uncertain market conditions.